Convention-cadre sur les changements climatiques

Transcription

1 NATIONS UNIES Convention-cadre sur les changements climatiques Distr. GÉNÉRALE FCCC/CP/2008/2/Rev.1 9 décembre 2008 FRANÇAIS Original: ANGLAIS CONFÉRENCE DES PARTIES Quatorzième session Poznan, 1 er -12 décembre 2008 Point 5 a) de l ordre du jour Exécution des engagements et application des autres dispositions de la Convention Mécanisme financier de la Convention Rapport du Fonds pour l environnement mondial à la Conférence des Parties Note révisée du secrétariat * 1. Par sa décision 12/CP.2, la Conférence des Parties a adopté un mémorandum d accord entre la Conférence et le Conseil du Fonds pour l environnement mondial (FEM) (FCCC/CP/1996/15/Add.1), qui est entré immédiatement en vigueur. Ce mémorandum prévoit, notamment, que les rapports annuels du FEM doivent être communiqués à la Conférence des Parties par l intermédiaire du secrétariat. 2. En application de cette disposition, le secrétariat du FEM a soumis le rapport ci-joint, daté du 19 novembre 2008, qui est reproduit sans avoir été revu par les services officiels d édition et avec la pagination originale. 3. Le mémorandum d accord prévoit également que, conformément au paragraphe 1 de l article 11 de la Convention, le mécanisme financier relève de la Conférence des Parties, devant laquelle il est responsable et qui définit ses politiques, les priorités de son programme et les critères d éligibilité liés à la Convention. Le mémorandum d accord prévoit en outre que, après chacune de ses sessions, la Conférence des Parties communiquera au Conseil du FEM toute directive relative au mécanisme financier qu elle aura approuvée. * Le présent document a été reçu du secrétariat du Fonds pour l environnement mondial le 20 novembre 2008 et a été soumis immédiatement. GE (F)

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3 iii Annex Global Environment Facility November 20, 2008 [ENGLISH ONLY] REPORT OF THE GEF TO THE FOURTEENTH SESSION OF THE CONFERENCE OF THE PARTIES TO THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE

4 iv TABLE OF CONTENTS INTRODUCTION PART I. PROJECT ACTIVITIES FUNDED BY THE GEF....2 PART II. RESPONSE TO CONVENTION GUIDANCE Annexes ANNEX 1: SUMMARIES OF PROJECTS APPROVED UNDER THE GEF TRUST FUND ANNEX 2: SUMMARIES OF PROJECTS APPROVED UNDER THE LDCF AND SCCF ANNEX 3: STATUS OF NATIONAL COMMUNICATIONS FROM PARTIES NOT INCLUDED IN ANNEX I TO THE CONVENTION... 52

5 1 ABBREVIATIONS AND ACRONYMS ADB APR COP CPE CSP EBRD FSP GEF GHG IADB LDC LDCF LULUCF M&E MSP NAPA NCSA NCSP NDI NGO OP OPS4 PAS PPG RAF SBI SCCF SGP SIDS SIP SNC SP SPA UNDP UNEP UNFCCC UNIDO V&A Asian Development Bank Annual Performance Report Conference of the Parties Country Performance Evaluation Country Support Program European Bank for Reconstruction and Development Full-Size Project Global Environment Facility Greenhouse Gas Inter-American Development Bank Least Developed Country Least Developed Countries Fund Land Use, Land-Use Change, and Forestry Monitoring and Evaluation Medium-Sized Project National Adaptation Program of Action National Capacity Self Assessment National Communications Support Program National Dialogue Initiative Non-Governmental Organization Operational Program Fourth Overall Performance Study Pacific Alliance for Sustainability Project Preparation Grant Resource Allocation Framework Subsidiary Body for Implementation Special Climate Change Fund Small Grants Program Small Island Developing States Strategic Investment Program Second National Communication Strategic Program Strategic Priority on Adaptation United Nations Development Programme United Nations Environment Programme United Nations Framework Convention on Climate Change United Nations Industrial Development Organization Vulnerability and Adaptation

6 2 INTRODUCTION 1. This report has been prepared by the Global Environment Facility (GEF) for the fourteenth session of the Conference of the Parties (COP14) to the United Nations Framework Convention on Climate Change (UNFCCC). 2. The report consists of two parts and three annexes. Part I reports project activities approved by the GEF during the reporting period from September 1, 2007 to August 31, They include both climate change mitigation and adaptation activities funded from the GEF Trust Fund, the Least Developed Countries Fund (LDCF), and the Special Climate Change Fund (SCCF). Part II of the report provides GEF s response to Convention guidance. PART I PROJECT ACTIVITIES FUNDED BY THE GEF 3. As an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC), the GEF provides financing to country-driven projects consistent with guidance approved by the Conference of the Parties on policies, program priorities, and eligibility criteria. GEFfinanced projects are managed through 10 GEF implementing and executing agencies. 1 Climate Change Mitigation 4. During the reporting period, from September 1, 2007 to August 31, 2008, the GEF allocated $198 million from the Trust Fund to 41 projects in the climate change focal area, 2 including 29 full-size projects (FSPs) and 12 medium-sized projects (MSPs). 3 These projects will leverage approximately $1.5 billion in co-financing from the governments of the recipient countries, the private sector, the GEF agencies, other multilateral and bilateral agencies, and non-governmental organizations (NGOs). Table 1 gives basic information on these projects. For project summaries, see Annex The projects are distributed across six different regions. Out of the 39 projects, 13 are in East Asia and the Pacific, ten in Europe and Central Asia, seven in South Asia, five in Latin America and the Caribbean, three in the Middle East and North Africa, and one in Africa. Additionally, there are two global projects. 6. By strategic programs, 14 projects fall under Energy Efficiency in Buildings (SP1), seven under Energy Efficiency in Industry (SP2), eight under Renewable Energy (SP3), one under Energy Production from Biomass (SP4), and three under Sustainable Urban Transport (SP5), respectively. There is also one project approved under the GEF-4 interim strategy of Supporting the deployment of new, low-ghgemitting energy technologies (similar to OP7 prior to GEF-4). In addition, there is one project supporting the preparation of the Second National Communication (enabling activities). Finally, there are six 1 They are UN Development Program (UNDP), UN Environment Program (UNEP), the World Bank, African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the Inter-American Development Bank (IADB), the Food and Agriculture Organization (FAO), the International Fund for Agricultural Development (IFAD), and the UN Industrial Development Organization (UNIDO). 2 There are four multi-focal area projects with contribution from the climate change focal area. The figures presents here exclude funding from other focal areas. 3 A full-size project receives more than $1 million in GEF funds; a medium-sized project is limited to a maximum of $1 million in GEF funds, excluding agency fees. For both FSPs and MSPs, the GEF agencies receive a 10% fee on the top of the GEF grant for managing the projects.

7 multi-focal area projects in line with the Land Use, Land-Use Change, and Forestry (LULUCF) strategic program (SP6) of the climate change focal area By GEF agencies, the projects approved during the reporting period are distributed over seven GEF implementing and executing agencies. The UN Development Program (UNDP) has by far the largest share in terms of number of projects: 24 out of the 41 approved projects are with UNDP. This is followed by the World Bank (five), the European Bank for Reconstruction and Development (EBRD) (three), and the UN Environment Program (UNEP) and the Inter-American Development Bank (IADB) (two each). There are four additional projects jointly proposed by two GEF agencies: two with UNDP-UNEP, one with World Bank-UNDP, and one with EBRD-UNIDO. 8. In addition to financing the above projects, the GEF provided grants for project preparation. During the reporting period, the GEF provided a total of more than $2 million of project preparation grants (PPGs) for the development of 14 climate change mitigation projects from the GEF Trust Fund. Details of these PPGs are reported in Table 2. Climate Change Adaptation Activities Approved under the GEF Trust Fund 9. In response to the 2002 Marrakech Accords (COP decision 6/CP.7), which called for the GEF to establish pilot and demonstration projects that will provide real benefits, and may be integrated into national policy and sustainable development planning, the GEF allocated $50 million from the Trust Fund to establish a strategic priority Piloting an Operational Approach to Adaptation, also known as the Strategic Priority on Adaptation (SPA). The SPA program started in 2003, and has spread from GEF-3 to GEF-4. By August 2008, the pilot program was close to completion. The GEF Secretariat will submit a report on the completion of SPA to the GEF Council in November The SPA program will be evaluated by the independent GEF Office of Evaluation. Further support for adaptation from the GEF Trust Fund will depend on future decisions of the GEF Council and evolving guidance from the UNFCCC. 10. During this reporting period, eight projects were approved under the SPA, of which five are FSPs and three MSPs (see Table 3). Total GEF funding for these eight projects came to $43.3 million from the Trust Fund, including $14.7 million from the climate change focal area (SPA) and $28.6 million from other focal areas. These projects will leverage a total of $244.5 million in co-financing. 11. Of the eight approved SPA projects, three are with UNDP, two with the World Bank and the Asian Development Bank (ADB) each, and one with UNEP. Three of these eight SPA projects are regional: in Latin America, the Pacific, and Southeast Asia, respectively. One half of the SPA projects have multi-focal projects, with resources drawn from biodiversity, land degradation, and international waters focal areas, in addition to climate change. Activities Approved under the LDCF 12. During the reporting period, there were two meetings of the Least Developed Countries Fund/Special Climate Change Fund (LDCF/SCCF) Council. The first meeting was held on November 16, The decisions of that meeting are summarized in the highlights of the LDCF/SCCF discussions paper, available on the GEF website: pdf.

8 4 13. The second meeting of the LDCF/SCCF Council was held on April 24, The decisions and actions of the LDCF/SCCF Council at that meeting are summarized in the highlights of the LDCF/SCCF discussion paper, available on the GEF website: F%20Meeting%20April%202008%20revised.pdf. 14. The LDCF, including pledges, currently amounts to $172 million. Under the LDCF, all projects and project preparation grants are approved on a rolling basis. 15. With respect to the preparation and implementation of the National Adaptation Program of Action (NAPA) under the LDCF, seven projects and four enabling activities for NAPA preparation were approved during the reporting period, with a total GEF/LDCF allocation of $25.2 million (see Table 4). These projects are expected to leverage $65.3 million in co-financing. For project summaries, see Annex Aside from the above projects, six project preparation grants (PPGs) were approved, with a total GEF/LDCF allocation of $0.54 million (see Table 5). Activities Approved under the SCCF 17. During this reporting period, there were two meetings of the Least Developed Countries Fund/Special Climate Change Fund (LDCF/SCCF) Council. The first meeting was held on November 16, The decisions of that meeting are summarized in the highlights of the LDCF/SCCF discussions paper, found on the GEF website at The second meeting of the Least Developed Countries Fund/Special Climate Change Fund (LDCF/SCCF) Council was held on April 24, The decisions and actions of the LDCF/SCCF Council at that meeting are summarized in the highlights of the LDCF/SCCF discussion paper found on the GEF website at F%20Meeting%20April%202008%20revised.pdf. 19. Five SCCF projects were approved during this reporting period, with a total GEF/SCCF allocation of $29.4 million. Co-financing for these projects is expected to be $139.1 million (see Table 6). All of them are full-size projects. For summaries of these projects, please see Annex 2.

9 Table 1: Climate Change Mitigation Projects Approved under the GEF Trust Fund (From September 1, 2007 to August 31, 2008) Country Strategic Program Project Type Project Title Agency Date of GEF Amount Approval (Mil $) Cofinancing (Mil $) Indonesia OP7 FSP Micro-turbine Cogeneration Technology Application Project (MCTAP) UNDP 11/16/ China 2 FSP Thermal Power Efficiency World Bank 11/16/ China 1 FSP China EA FSP Market Transformation of Energy-Efficient Bricks and Rural Buildings (MTEBRB) UNDP 11/16/ Enabling China to Prepare Its Second National Communications to UNFCCC UNDP 11/16/ India 5 FSP Sustainable Urban Transport Project Indonesia 3 FSP World Bank/UNDP 11/16/ Sustainable Geothermal Power Generation Development Program World Bank 11/16/ Thailand 3 FSP Promoting Renewable Energy in Mae Hong Son Province UNDP 11/16/ Global 1 FSP Global Market Transformation for Efficient Lighting UNEP/UNDP 11/16/ Regional/Multicountry 6 FSP Global 6 FSP Rehabilitation and Sustainable Use of Peatland Forests in South-East Asia IFAD 11/16/2007 Carbon Benefits Project (CBP): Modeling, Measurement and Monitoring UNEP 11/16/ CC 4.21 BD&LD CC 3.33 BD&LD 5.49 Ukraine 3 FSP Creating Markets for Renewable Power in Ukraine EBRD 02/22/ Iran 6 FSP MENARID Institutional Strengthening and Coherence for Integrated Natural Resources Management UNDP 04/24/ CC 3.83 BD&LD&IW 14.6

10 Turkey 1 FSP Promote Energy Efficiency in Buildings UNDP 04/24/ Iran 5 FSP Facilitating Sustainable Mobility in Tehran UNDP 04/24/ Mexico 2 FSP Mexico Rural Development World Bank 04/24/ India 2 FSP Turkey 1 FSP Russian Federation 1 FSP Chiller Energy Efficiency Project - under the Programmatic Framework for Energy Efficiency World Bank 04/24/ Market Transformation of Energy Efficient Appliances in Turkey UNDP 04/24/ Improving Efficiency in Public Buildings in the Russian Federation EBRD 04/24/ Russian Federation 1 FSP Improving Urban Housing Efficiency in the Russian Federation EBRD 04/24/ Malaysia 1 FSP Buildings Sector Energy Efficiency Project (BSEEP) UNDP 04/24/ Chile 2 FSP Promoting and Strengthening an Energy Efficiency Market in the Industry Sector IADB 04/24/ Uzbekistan 1 FSP Promoting Energy Efficiency in Public Buildings UNDP 04/24/ Argentina, Bolivia and Paraguay 6 FSP Sustainable Forest Management in the Transboundary Gran Chaco Americano Ecosystem UNEP/UNDP 4/24/ CC 4.41 BD&LD Brazil 4 FSP Sugarcane Renewable Electricity (SUCRE) UNDP 07/28/ Russian Federation 1 FSP Transforming the Market for Efficient Lighting UNDP 07/28/ Russian Federation 2 FSP Market Transformation Programme on Energy Efficiency in GHG-Intensive Industries in Russia EBRD/UNIDO 07/28/

11 China 6 FSP PRC-GEF Partnership: Sustainable Development in Poor Rural Areas World Bank 07/28/ CC 1.68 LD 143 China 1 FSP Phasing-out Incandescent Lamps & Energy Saving Lamps Promotion (PILESLAMP) UNDP 07/28/ Haiti 6 FSP Sustainable Land Management of the Upper Watersheds of South Western Haiti IADB 7/28/ CC 1.72 LD 18.1 Mauritius 1 MSP Pakistan 1 MSP Marshall Islands 3 MSP Removal of Barriers to Energy Efficiency and Energy Conservation in Buildings UNDP 09/24/ Promotion of Energy Efficient Cooking, Heating and Housing Technologies (PEECH) UNDP 10/15/ Action for the Development of Marshall Islands Renewable Energies (ADMIRE) UNDP 11/26/ Montenegro 3 MSP Power Sector Policy Reform to Promote Small Hydro Development in the Republic of Montenegro UNDP 01/28/ India 2 MSP India 1 MSP India 2 MSP China 5 MSP Pakistan 3 MSP Achieving Reduction in GHG Emissions through Advanced EE Technology in Electric Motors UNDP 03/27/ Mokshda Green Cremation System for Energy and Environment Conservation UNDP 03/31/ Energy Efficiency Improvements in the Indian Brick Industry UNDP 04/03/ Promoting Clean Electric Buses for the Beijing Olympics (CEBBO) UNDP 05/02/ Productive Uses of Renewable Energy in Chitral District, Pakistan (PURE-Chitral) UNDP 05/13/ Yemen 3 MSP Yemen Geothermal Development Project UNEP 06/23/ Palau 3 MSP Sustainable Economic Development through Renewable Energy Applications (SEDREA) UNDP 07/22/

12 Kyrgyzstan 1 MSP Improving Energy Efficiency in Buildings UNDP 08/13/ Total *Includes only funding from the Climate Change Focal Area; **Includes funding from other focal areas * ** SP1 = Promoting Energy Efficiency in Residential and Commercial Buildings; SP2 = Promoting Energy Efficiency in the Industrial Sector; SP3 = Promoting Market Approaches for Renewable Energy; SP4 = Promoting Sustainable Energy Production form Biomass; SP5 = Promoting Sustainable Innovative Systems for Urban Transport; SP6 = Management of LULUCF; OP7 = Supporting the Deployment of New, Low-GHG-Emitting Energy Technologies; EA = Enabling Activities. CC = Climate Change; BD = Biodiversity; LD = Land Degradation; IW = International Waters. 8

13 Country Strategic Program Table 2: Project Preparation Grants Approved under the GEF Trust Fund (From September 1, 2007 to August 31, 2008) Project Type Project Title Agency Date of Amount Approval (Mil $) China 1 FSP Market Transformation of Energy-Efficient Bricks and Rural Buildings (MTEBRB) UNDP 10/03/ Global 1 FSP Global Market Transformation for Efficient Lighting UNEP/UNDP 11/13/ China 6 FSP PRC-GEF Partnership: Sustainable Development in Poor Rural Areas World Bank 02/04/ Uzbekistan 1 FSP Promoting Energy Efficiency in Public Buildings UNDP 02/22/ Turkey 1 FSP Promote Energy Efficiency in Buildings UNDP 02/22/ Russian Federation 1 FSP Transforming the Market for Efficient Lighting UNDP 03/03/ Ukraine 3 FSP Creating Markets for Renewable Power in Ukraine EBRD 03/05/ Haiti 6 FSP Sustainable Land Management of the Upper Watersheds of South Western Haiti IADB 04/02/ Russian Federation 1 FSP RUS Improving Efficiency in Public Buildings in the Russian Federation - under the Energy Efficiency Umbrella Program EBRD 04/17/ China 1 FSP Phasing-out Incandescent Lamps & Energy Saving Lamps Promotion (PILESLAMP) UNDP 05/01/ Iran 5 FSP Facilitating Sustainable Mobility in Tehran UNDP 05/27/ Russian Federation 1 FSP Improving Urban Housing Efficiency in the Russian Federation - under the Energy Efficiency Umbrella Program EBRD 05/29/ Russian Federation 2 FSP Market Transformation Programme on Energy Efficiency in GHG-Intensive Industries in Russia EBRD/UNIDO 06/23/ Iran 6 FSP MENARID Institutional Strengthening and Coherence for Integrated Natural Resources Management UNDP 07/14/ Total 2.44 SP1 = Promoting Energy Efficiency in Residential and Commercial Buildings; SP2 = Promoting Energy Efficiency in the Industrial Sector; SP3 = Promoting Market Approaches for Renewable Energy; SP4 = Promoting Sustainable Energy Production form Biomass; SP5 = Promoting Sustainable Innovative Systems for Urban Transport; SP6 = Management of LULUCF.

14 Country/Region Table 3: Climate Change Adaptation (SPA) Projects Approved under the GEF Trust Fund (From September 1, 2007 to August 31, 2008) Project Title Agency Date of Type Approval GEF Amount (Mil $) Co-financing (Mil $) Albania MSP Identification and Implementation of Adaptation Measures in the Drini-Mati River Deltas India FSP Sustainable Land and Ecosystem Management (SLEM) Partnership Program Regional (Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, Suriname, Venezuela) Regional (Papua New Guinea, Solomon Islands, Palau, Federated States of Micronesia, Fiji, Timor Leste, Vanuatu) Regional (Indonesia, Malaysia, Philippines) FSP FSP Integrated and Sustainable Management of Transboundary Water Resources in the Amazon River Basin Coastal and Marine Resources Management in the Coral Triangle of the Pacific UNDP 03/17/ Word Bank 06/23/ SPA 6 BD&LD UNEP 11/16/ SPA 5.7 IW ADB 04/24/ SPA 7.4 IW&BD FSP Coastal and Marine Resources Management in the Coral ADB 04/24/ SPA 76 Triangle: Southeast Asia 9.4 IW&BD Tajikistan MSP Sustaining Agricultural Biodiversity in the Face of UNDP 02/22/ Climate Change Uruguay MSP Implementing Pilot Climate Change Adaptation UNDP 01/09/ Measures in Coastal Areas of Uruguay Yemen FSP Adaptation to CC Using Agro-Biodiversity Resources in the Rain-Fed Highlands of Yemen World Bank 11/01/ Total 14.7 SPA 43.3 Total BD = Biodiversity; LD = Land Degradation; IW = International Waters

15 Country Table 4: Projects Approved under the Least Developed Countries Fund (From September 1, 2007 to August 31, 2008) Project Date of type Project title Agency Approval LDCF Amount (Mil $) Cofinancing (Mil $) Angola EA Enabling Activities for the Preparation of a National Adaptation UNEP 10/17/ Plan of Action Bangladesh FSP Community-Based Adaptation to CC through Coastal UNDP 05/03/ Afforestation Bhutan FSP Reduce CC-Induced Risks and Vulnerabilities from Glacial Lake UNDP 10/04/ Outbursts in the Punakha-Wangdi and Chamkhar Valleys Burkina Faso FSP Strengthening Adaptation Capacities and Reducing the UNDP 05/01/ Vulnerability to CC in Burkina Faso Cape Verde FSP Building Adaptive Capacity and Resilience to CC in the Water UNDP 02/12/ Sector in Cape Verde Eritrea FSP Integrating CC Risks into Community-Based Livestock UNDP 09/05/ Management in the Northwestern Lowlands of Eritrea Malawi FSP Climate Adaptation for Rural Livelihoods and Agriculture AfDB 05/03/ (CARLA) Myanmar EA Preparation of National Adaptation Programme of Action (NAPA) UNEP 07/01/ Nepal EA National Adaptation Programme of Action to Climate Change UNDP 11/01/ Sudan FSP Implementing NAPA Priority Interventions to Build Resilience in the Agriculture and Water Sectors to the Adverse Impacts of Climate Change in Sudan UNDP 12/19/ Timor-Leste EA National Adaptation Programme of Action to Climate Change UNDP 10/17/ (NAPA) Formulation Project Tuvalu FSP Increasing Resilience of Coastal Areas and Community Settlements to Climate Change UNDP 07/08/ Total

16 Table 5: Project Preparation Grants (PPG) Approved under Least Developed Countries Fund (From September 1, 2007 to August 31, 2008) Country Project title Agency Date of Approval GEF/LDCF Amount (Mil $) Burkina Faso Strengthening Adaptation Capacities and Reducing the Vulnerability to CC in Burkina UNDP 05/08/ Faso Cape Verde Building Adaptive Capacity and Resilience to CC in the Water Sector in Cape Verde UNDP 04/09/ Djibouti Implementing NAPA Priority Interventions to Build Resilience in the Most Vulnerable UNEP 08/08/ Coastal Zones in Djibouti Sudan Implementing NAPA Priority Interventions to Build Resilience in the Agriculture and UNDP 12/20/ Water Sectors to the Adverse Impacts of Climate Change in Sudan Tuvalu Increasing Resilience of Coastal Areas and Community Settlements to CC UNDP 07/08/ Zambia Adaptation to the Effects of Drought and Climate Change in Agro-Ecological Zone 1 and 2 UNDP 08/08/ in Zambia Total 0.54 Table 6: Climate Change Adaptation Projects Approved from the Special Climate Change Fund (From September 1, 2007 to August 31, 2008) Country/Region Project Title Agency Date of Approval China Mexico Mainstreaming Adaptation to Climate Change Into Water Resources Management and Rural Development Adaptation to Climate Change Impacts on the Coastal Wetlands in the Gulf of Mexico through Improved SCCF Amount (Mil $) Co-financing (Mil $) World Bank 09/05/ World Bank 07/28/ Water Resource Management Mongolia Mongolia Livestock Sector Adaptation Project IFAD 07/28/ Philippines Climate Change Adaptation Project World Bank 07/28/ Regional (Cook Islands, Fiji, Marshall Islands, Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu Pacific Islands Adaptation to Climate Change Project (PACC) UNDP 04/01/ Total

17 13 Part II Response to Convention Guidance 20. UNFCCC COP decision 7/CP.13 provides additional guidance to the GEF as an operating entity of the financial mechanism of the UNFCCC. The decision requests the GEF: (a) To continue to take the necessary steps to enhance its country dialogues, including ensuring the clarity, transparency and timeliness in its communications with Parties on changes undertaken in the Global Environment Facility reform agenda; (b) To inform the implementing/executing agencies of the Global Environment Facility of the relevant Convention provisions and decisions of the Conference of Parties in the performance of their Global Environment Facility obligations, and to encourage them, as a first priority, whenever possible, to use national experts/consultants in all aspects of project development and implementation; (c) To continue to simplify and streamline the application of the incremental cost principle, building on its recent reforms and taking into account lessons learned on the constraints in resource mobilization by developing countries; (d) To take fully into account lessons learned in the strategic priority Piloting an Operational Approach to Adaptation, including the application of incremental cost, to help inform on how the Global Environment Facility could best support climate adaptation activities; (e) To continue to improve access to Global Environment Facility funds, as highlighted in the Third Overall Performance Study of the Global Environment Facility, for those countries that are particularly vulnerable to the adverse effects of climate change; (f) To submit the report of the Global Environment Facility to the Conference of the Parties within a time frame that would allow Parties to the Convention to examine the report carefully prior to the start of the sessions of the Conference of the Parties; (g) To continue to ensure that financial resources are provided to meet the agreed full costs incurred by developing country Parties in complying with their obligations under Article 12, paragraph 1, of the Convention; (h) To take into consideration the request contained in paragraph 1 (g) above in its planned midterm review in 2008; (i) To work with its implementing agencies to continue to simplify its procedures and improve the effectiveness and efficiency of the process through which Parties not included in Annex I to the Convention (non-annex I Parties) receive funding to meet their obligations under Article 12, paragraph 1, of the Convention, with the aim of ensuring the timely disbursement of funds to meet the agreed full costs incurred by developing country Parties in complying with these obligations; (j) To refine, as appropriate, operational procedures to ensure the timely disbursement of funds to meet the agreed full costs incurred by those non-annex I Parties that are in the process of preparing their third, and where appropriate, fourth national communications, in the light of paragraph 1 (g)-(i) above;

18 14 (k) To assist, as appropriate, non-annex I Parties in formulating and developing project proposals identified in their national communications in accordance with Article 12, paragraph 4, of the Convention and decision 5/CP.11, paragraph 2; (l) To ensure, together with its implementing agencies, that the analysis of project proposals for the financing of second and subsequent national communications is consistent with the guidelines for the preparation of national communications from non-annex I Parties. 21. Further, decision 7/CP.13 invites the GEF: (a) To continue to provide information on funding for projects identified in the national communications of non-annex I Parties in accordance with Article 12, paragraph 4, of the Convention and subsequently submitted and approved; (b) To consider the views of, and any concerns expressed by, Parties regarding their current experiences with the Global Environment Facility and its implementing agencies in relation to the provision of financial support for the preparation of national communications from non-annex I Parties, as contained in documents FCCC/SBI/2007/MISC.13 and Add.1; 22. Finally, decision 7/CP.13 requests the GEF to include, in its regular report to the COP, information on the specific steps it has taken to implement the above-mentioned guidance and to continue to provide, as appropriate, financial resources to developing country Parties, in particular the least developed countries and small island developing states among them, and to report regularly to the COP on the activities it has supported. 23. The following sections summarize GEF s response to the above Convention guidance. Country Support Programs and Capacity Building 24. The GEF continues to support country dialogues ensuring the clarity, transparency and timeliness in its communications with Parties of UNFCCC on changes undertaken in the GEF reform agenda. The GEF has funded several programs supporting effective and efficient implementation of the Convention through the National Dialogue Initiative (NDI), Country Support Program (CSP), and capacity building through National Capacity Self Assessment (NCSA), cross-cutting capacity building, as well as the Small Grants Program (SGP). National Dialogue Initiative (NDI) 25. The NDI has formed an integral component of country support activities providing a unique platform for exchange of information and enhancing cooperation between the implementing/executing agencies and other GEF partner organizations. The global objective of the NDI in GEF-4 is to provide targeted and flexible support for country-level multi-stakeholder dialogues and sharing of information and experiences, leading to action on national GEF matters, including issues linked to the UNFCCC, through strategic national priority setting and strengthened coordination and partnerships. The NDI also involves a wide range of government ministries and agencies, NGOs, communities, academic and research institutions, the private sector, as well as other partners and donors in the country. 26. The NDI workshops also create a unique opportunity for the GEF agencies to inform participants about provisions and decisions of the Conference of Parties in the performance of their GEF obligations and to learn more about capacity and opportunities to use national experts in all aspects of project development and implementation. They have allowed diverse stakeholder groups in GEF recipient countries to:

19 15 Inform themselves about global climate change, adaptation and Convention issues, including GEF s response to addressing these challenges; Take stock of climate change mitigation and adaptation activities and results of the corresponding GEF portfolios in their countries; Further define priorities for climate change mitigation and adaptation funding and develop national GEF programming strategies in these areas; Strengthen national GEF coordination processes and mechanisms and inter-sectoral coordination linked to climate change issues; Promote integration of the GEF in national climate change and sustainable development plans and processes. Country Support Program 27. The overall objective of the GEF-funded Country Support Program (CSP) is to strengthen the capacity of GEF national focal points to support and coordinate GEF activities in their countries and constituencies. More broadly, the CSP has involved a wider range of GEF stakeholders, including national UNFCCC Convention focal points in some cases, international civil society organizations, the GEF-NGO Network, and GEF partners. 28. The CSP has thee components of activities, two of which are broadly linked to the UNFCCC: the sub-regional workshops for GEF focal points and the online focal point knowledge facility. 29. The sub-regional workshops provide a unique opportunity for the GEF national focal points to learn about GEF funding policies and strategies related to a wide variety of issues, including climate change mitigation and adaptation, and to exchange country information, national strategies, and project experiences with their peers. 30. The online focal point knowledge facility is widely used by many countries. It provides a continuously accessible, interactive, and regularly updated information and knowledge resource for focal points and others interested in GEF matters. This knowledge facility contains wide- ranging access to information on climate change mitigation and adaptation and its link to the Convention as well as country experiences in integrating climate considerations into national development planning. For further information, please visit the GEF website at Outcomes of the National Dialogues and Sub-Regional Workshops 31. Following the guidance provided in decision 7/CP.13, the GEF has taken multiple steps to continue to enhance the NDI and Country Support Program. From September 2007 to September 2008, the GEF and its partner agencies organized a total 17 NDI meetings and sub-regional workshops. These covered a wide range of countries and regions, including LDCs and SIDS. The dates and locations of these events are summarized in Table 7.

20 16 Table 7: Summary of National Dialogues and Sub-Regional Workshops Date Event Country/Region September 14-16, 2007 National Dialogue Turkmenistan (Ashgabat) September, 17-18, 2007 National Dialogue Indonesia (Jakarta) October 9-11, 2007 Sub-regional Workshop Caribbean (Bahamas) October 15-16, 2007 Sub-regional Workshop Latin America (Sao Paulo, Brazil) October 30 - November 1, 2007 National Dialogue India (Bhubaneswar) December 2-3, 2007 Sub-regional Workshop NAMESWA (Bali, Indonesia) January 15-17, 2008 National Dialogue Burkina Faso (Bobo) March 25-27, 2008 National Dialogue Cambodia (Phnom Penh) April 1-2, 2008 Sub-regional Workshop Europe/Commonwealth of Independent States (Belgrade, Serbia) May 15-16, 2008 Sub-regional Workshop Asia (Manila, Philippines) June 16-17, 2008 National Dialogue Cameroon (Yaoundé) June 19-21, 2008 Sub-regional Workshop West & Central Africa (Douala, Cameroon) June 25-27, 2008 Sub-regional Workshop Eastern & Southern Africa (Windhoek, Namibia) July 8-10, 2008 Sub-regional Workshop Caribbean (Havana, Cuba) July 16-18, 2008 National Dialogue Colombia (Bogota) September 10-12, 2008 National Dialogue Ecuador September 18-19, 2008 Sub-regional Workshop Pacific SIDS (Auckland, New Zealand) 32. Typically, the agendas of the NDI and sub-regional workshops include sessions on GEF policies and procedures, integration of the GEF in environment and sustainable development plans and policies, enhancing GEF national coordination and priority setting, tracking portfolio results and supporting focal point roles and activities, and enhancing GEF national coordination, communications and outreach. The workshop topics in 2008 included updates on the Resource Allocation Framework (RAF); GEF focal area strategies and adaptation funds; knowledge management and monitoring tools and resources available to focal points; new GEF project cycles; constituency coordination lessons and good practices; and civil society participation in the GEF and Small Grants Program. Each of the workshop sessions effectively showcased individual country experiences, allowing delegations to exchange best practices. 33. To obtain more detailed information on the individual National Dialogues and Sub-regional Workshops, please see the GEF Country Support website at:

21 17 Capacity Building through NCSAs 34. Capacity building has always been a central element of GEF climate change projects and more generally in almost all GEF-funded projects. The GEF continues supporting capacity building initiatives in LDCs and SIDS based on their requests. During the reporting period, GEF supported eight LDCs and SIDS in implementing National Capacity Self Assessments (NCSAs) and cross-cutting capacity building projects: Bhutan, Belize, Gambia, Guinea-Bissau, Jamaica, Madagascar, Senegal, and Tuvalu. Total amount of GEF funding is over $1.8 million. Projects are aimed at reforming national legal and financial systems or enhancing data management systems that would facilitate data flows for progress indicators for international conventions, including the UNFCCC. 35. NCSAs have provided an opportunity for countries to assess the critical gaps in their capacity to sustain monitoring and reporting activities in the GEF focal areas. Similarly, NCSAs have served as a logical follow-up to enabling activities that assisted developing countries to fulfill their commitments under the Conventions. NCSAs have also provided inputs for the formulation of MSPs and FSPs that, among other objectives, have aimed to build capacity in climate change and other specific areas of global environmental management. Countries that have been finalizing their needs assessments consider their NCSAs to be a strategic tool in country programming on global environmental issues. Capacity Building through the Small Grants Program 36. The GEF has funded local grassroots capacity building and climate change projects through community-based and non-governmental organizations. The GEF-funded SGP is a global corporate program implemented by UNDP. The primary focus of the SGP is to support poor and vulnerable communities in their efforts toward sustainable development through climate change mitigation and adaptation projects. SGP supports initiatives in the areas of renewable energy, energy efficiency, environmentally sustainable transport projects, and community-based adaptation. 37. Given SGP s highly local and grassroots stakeholders, capacity building is always an integrated component in the projects. The purpose of SGP capacity building is to contribute to creating significant positive change in the country s response to the challenges of climate change for the achievement of both local and global environmental benefits through civil society in partnership with development partners. Capacity building activities happen at three levels: Capacity at the global civil society level through SGP knowledge sharing and networking; Capacity at the country level through community-based and non-governmental organization grantees and the SGP National Steering Committees; Capacity at the community level through project implementation. 38. From October 2007 to September 2008, SGP supported over 188 projects in the climate change focal area, representing some $5.6 million in GEF grants with $7.6 million in associated cash and in-kind co-financing. Simplifying the Application of the Incremental Cost Principle 39. In June 2007, the GEF Council approved the Operational Guidelines for the Application of the Incremental Cost Principle, 4 which provides a simple five-step process for determining the incremental costs of a GEF project. These guidelines allow the GEF to move from calculating incremental costs quantitatively to providing qualitative incremental reasoning for a GEF project. These guidelines have significantly enhanced the transparency and efficiency of determining the incremental costs of a project throughout the project cycle, from project design to implementation, monitoring, and evaluation. 4 GEF/C.31/12.

22 18 Lessons Learned from SPA 40. As mentioned in Part I of this report, the GEF has been financing pilot adaptation projects under the SPA since 2003, consistent with UNFCCC guidance. 5 The pilot program is close to completion, and will be evaluated by the independent GEF Office of Evaluation. It is expected that the evaluation will take into account both the lessons learned and the challenges and opportunities in developing the first adaptation portfolio. Project demand under the SPA continues to be high, in parallel with the growing adaptation portfolios under the LDCF and SCCF. Support to Vulnerable States through Programmatic Approaches 41. In April 2008, the GEF Council approved the application of programmatic approaches to support countries in accessing GEF funding. Using programmatic approaches, the GEF Secretariat has assisted many countries, particularly those in the group allocation category under the Resource Allocation Framework (RAF), to plan utilization of resources available to them in a more effective and efficient manner. The programmatic approach also provides another framework for dialogue between countries, the GEF Secretariat, and the implementing and executing agencies. 42. The GEF Secretariat, in collaboration with its implementing and executing agencies, has initiated several regional and multi-country programs to help especially least developed countries (LDCs) and small island states (SIDS) to mobilize resources from the GEF and other sources to fund projects in those countries. Three such programs merit particular mention: (1) the Pacific Alliance for Sustainability (PAS) Program; (2) the Strategic Investment Program for Sustainable Land Management in Sub-Saharan Africa; and (3) the West Africa Program. The Pacific Alliance for Sustainability 43. Recognizing the findings of the Third Overall Performance Study of the GEF and the difficulties that Pacific Island Countries have in accessing GEF resources, the GEF has launched the Pacific Alliance for Sustainability (GEF-PAS) Program. The GEF-PAS has been established to address the specific difficulties that vulnerable Pacific Island Countries have with accessing GEF resources. 44. The GEF-PAS will consist of a total of 24 projects with approximately $98.8 million funding from the focal areas of biodiversity, climate change, international waters, and persistent organic pollutants. The GEF-PAS includes the following fifteen Pacific Island countries: Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor Leste, Tonga, Tuvalu, and Vanuatu. Among the 24 projects anticipated, seven projects will address climate change adaptation, and five projects will address climate change mitigation. The mitigation projects will aim to promote renewable energy and energy efficiency in the participating countries, while the adaptation projects will focus on adaptation issues in a variety of sectors, such as water resources, coastal zone management, and agriculture. The GEF-PAS was developed in close and extensive consultation with Pacific Island Country officials and experts The Strategic Investment Program for Sustainable Land Management in Sub-Saharan Africa 45. The Strategic Investment Program for Sustainable Land Management in Sub-Saharan Africa (SIP) is a response from the GEF to support Sub-Saharan African countries in pursuing the multi-sector, long-term programmatic approaches needed to scale up sustainable land management (SLM). The SIP aims to directly contribute to the implementation of the national action programs to combat desertification. The projects under SIP will pay specific attention to climate proof SLM investments. In June 2007, the GEF Council approved the SIP s programmatic framework and an accompanying 5 5/CP.7 and 6/CP.7.

23 portfolio of planned projects to be initiated in , amounting to an overall GEF investment of $150 million during GEF The development of the SIP s framework was guided by a series of joint consultations and indepth analysis of past experience, in particular from the GEF s implementation of activities to combat land degradation including support to Action Plan for the Environment Initiative of the New Partnership for Africa s Development. In addition, each SIP operation is integrated into the overall SLM programmatic vision of a recipient country through the multi-partner platform of TerrAfrica. The SIP was launched in October 2005 to provide an operational framework for partners to better join and align efforts to scale up SLM in Sub-Saharan Africa. The West Africa Program 47. The West Africa Program is a GEF initiative that consists of a biodiversity component and a climate change component (with a focus on energy). The program will cover a total of 18 countries in the region: Benin, Burkina Faso, Burundi, Cape Verde, Chad, Cote d Ivoire, the Gambia, Guinea, Guinea- Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo. The total indicative GEF financing for this program is $84.1 million, including $38.8 million for the biodiversity component and $45.3 million for the climate change/energy component. 48. Development of the West Africa Program has been based on extensive consultation with the ministers and other senior officials and technical experts from the countries in the region. A list of priority projects for each country was endorsed at a ministerial-level meeting in Cotonou, Benin in August The projects will focus on promoting renewable energy technologies for rural electrification, renewable energy for modern energy services, bioenergy, energy-efficient lighting and appliances, and energy-efficient technologies and practices in industry and urban transport. The Programmatic Framework Document of the West Africa Program will be submitted to the upcoming GEF Council meeting in November Individual country projects under the program are under active development. Shift of GEF Reporting Cycle 49. In order to allow sufficient time to prepare and submit the GEF report to the COP and for Parties to review it carefully prior to the start of the sessions of the COP, starting in 2009 the cut-off date of the GEF reporting period will be shifted to June 30. In other words, the next GEF report to the COP will cover the period of September 1, 2008 to June 30, Subsequent GEF reports to the COP will cover the period of July 1 to June 30. Provision of Financial Resources to Meet Convention Obligations 50. The Resource Allocation Framework (RAF) that was approved by the GEF Council in September 2005 began to be implemented in February 2007 when GEF-4 became effective. In the design of the RAF, each eligible country is provided with a floor of $1 million in each of the two focal areas (climate change and biodiversity). This means that each eligible country is guaranteed $1 million in the climate change focal area during a four-year GEF phase. Based on past experience in supporting countries with their preparation of national communications, this provision is judged to be adequate to cover the costs incurred by most countries to implement their national report preparation process. 51. Parties had called upon GEF implementing agencies to simplify procedures to improve the effectiveness and efficiency of the process through which Parties receive funding for national communications. For the Second National Communications, the GEF took a programmatic approach whereby an envelope of resources had been approved by the Council, with delegated approval authority to the implementing agencies with regard to individual country proposals. The proposals for national

24 communications are always reviewed to ensure that they are consistent with the guidelines for the preparation of national communications from non-annex I Parties One of the key reforms implemented under GEF-4 is the opportunity for direct consultation between a country and the GEF Secretariat in developing country programs. These dialogues, together with the Country Support Program, have enhanced the capacity of the countries to develop projects for GEF funding. Support for National Communications Status of National Communications By 2008, 143 non-annex I Parties have received GEF funding for the preparation of their national communications to the UNFCCC. This includes five Parties with full-sized projects and 10 Parties that are currently in the process of finalizing their project proposals for approval by the government and/or GEF implementing agencies. Two Parties have not yet requested funding for their Second National Communication. Three Parties (Argentina, Mexico, and Uruguay) have submitted their SNCs to the UNFCCC and one Party (Mexico) has submitted its Third National Communication. 54. With the exception of the 10 countries that are still preparing their project proposals, all the national communications projects are currently under implementation, which are at different stages of progress. Eighteen Parties expect to have a draft national communication report by end of 2008, while 65 Parties have reported that a draft report will be in Thirty-eight Parties would complete their national communications with the remaining reports (approximately 20 Parties) expected by Given that submission of national communications to the UNFCCC has to go through a government approval process, exact submission dates are usually not reported by Parties. Workshops and Training through NCSP 55. The past year has witnessed a growing demand for support from the National Communications Support Program (NCSP) as the implementation of the Second National Communications (SNCs) is getting underway in the majority of non-annex I Parties. The NCSP provided a wide range of technical support, including organization of workshops on the preparation of SNCs with a focus on climate change vulnerability and adaptation assessments. 56. Three recent workshops were organized in Bridgetown, Barbados; Dakar, Senegal; and Bangkok, Thailand. The Bridgetown workshop for the Caribbean countries took place on April 8-11, 2008 and was attended by 30 delegates from 12 countries. The Dakar workshop for the African countries was organized on June 16-20, 2008; it was attended by 34 participants from 19 countries. Finally, the Bangkok workshop for the Asian countries took place on September 9-12, 2008 and was attended by 38 participants from 14 countries. 57. Recognizing the increasing relevance of the SNCs to national climate change and development policy decisions, these workshops aimed to provide general guidance to and facilitate the sharing of experiences among national SNC project coordinators and technical teams on the key technical and policy issues related to the preparation of the SNCs. 58. Given the high priority that countries have given to the vulnerability and adaptation (V&A) assessments, the workshops provide an opportunity to discuss climate risks and adaptation issues in greater detail. More policy relevant and location-specific V&A assessment has been identified as a priority to promote the formulation and implementation of adaptation strategies in the respective regions. 6 See Annex 3 for country-by-country details.